UK Shelves Rule To Raise Rs 41 lakh Minimum Income For Family Visa: How This Benefits Indians

In a sigh of relief for Indians, the UK government has dropped the proposition to raise the minimum income threshold required to bring family members to the UK. The new Labour Party government has shelved this rule which suggested a planned ‘incremental’ increase in the minimum income threshold at Rs 41.5 lakh annually for British nationals and permanent residents applying to bring family members to join them in the UK. If initiated, such a hike would have impacted several Indians living in the UK.

Addressing the House of Commons, UK Home Secretary Yvette Cooper announced that there will be no further increase on the current limit until a comprehensive review is conducted by the Migration Advisory Committee (MAC).

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Sunak government's Proposal Quashed

The proposal was initially introduced by former Prime Minister Rishi Sunak to raise the minimum salary requirement from the current £29,000 (approximately Rs 26,61,676) to as much as £44,700 equivalent to around Rs 41.5 lakh. The current threshold remains at £29,000 until a comprehensive review is compiled by the MAC.

The Sunak-led government went heavy on certain measures to curb migration in December last year wherein it had hiked the minimum salary or income required by British nationals to maintain long-term Family Visas for spouses or parents from GBP (£)18,600 to GBP (£)29,000. As per the former government’s proposal, this would have been followed by further hikes to GBP (£)38,700 – in line with the minimum income criteria for the Skilled Worker Visa route.

However, the Labour Party government has quashed this incremental hike, and the current threshold, i.e., GBP (£)29,000 will be maintained until further change/notice.

“The family immigration rules, including the minimum income requirement, need to balance respect for family life with ensuring the UK’s economic wellbeing,” the UK Home Secretary said in her speech.

How would this benefit Indians?

1. Easing Financial Burden: The decision to shelve the income threshold hike for the family visa category helps Indians living in the UK bear the brunt of a significant increment hike in maintaining their income limit. With the minimum income requirement remaining at £29,000, the financial burden on those looking to reunite with their loved ones in the UK would be lessened.

2. Pushing Long-term Settlement: By keeping the income threshold at a more attainable level, the UK government would help more Indian nationals who are considering a long-term settlement in the country. This would further allow stability for families planning their futures within the UK in terms of educational and professional opportunities.

3. Encouraging Educational Engagement: The decision supports a balanced immigration policy on the part of the UK which recognises the value of international students, many of whom come from India. As international students bring significant revenue through tuition fees and provide a vital short-term labour supply for UK businesses, maintaining a reasonable income threshold supports Indians abroad as well as the UK’s economy.

The Future Course

In addition to reviewing the family immigration rules, the MAC will also scrutinise the UK’s dependence on international recruitment for key sectors including IT and engineering. These two sectors of the UK’s economy significantly rely on skill-based talent from countries such as India. “As a first step, I am commissioning the MAC to review the reliance of key sectors on international recruitment, particularly IT and engineering,” Cooper stated.

Indians constituted the second-highest cohort under the UK’s Family Visa category in 2023, with 5,248 visas, followed by Pakistan and ahead of Bangladesh individuals, according to a report by the Business Standard.

Given how international students provide a short-term labour supply for UK businesses, the government there needs to curate a balanced approach that supports its economic growth without disturbing the migrated community too much.